Eni announces an important gas discovery made from the Geng North-1 well drilled in the North Ganal license, approximately 85 km away from the east coast of Kalimantan, Indonesia. Preliminary estimates indicate total volumes of 5 trillion cubic feet of gas (approximately 140 billion cubic meters) with a condensate content of up to approximately 400 million barrels. The data acquired will allow the study of options for accelerated development.
The well, drilled to a depth of 5.025 meters in 1.947 meters of water depth, encountered a gas column of approximately 50 meters in Miocene age sandstones with excellent petrophysical properties, which were the subject of an intense acquisition campaign data. For a complete evaluation of the discovery, a production test was successfully carried out which, although limited by the capabilities of the test equipment, allowed us to estimate a well flow rate of 80-100 million cubic feet/day (approximately 2,2 -2,7 million cubic meters per day) and 5000 -6000 barrels per day of associated condensates.
The discovery confirms the effectiveness of Eni's strategy aimed at creating value through in-depth knowledge of geological issues and the application of advanced geophysical technologies. The ongoing exploration campaign, together with the recent acquisitions, is in line with Eni's transition strategy, to progressively lead Eni's portfolio in 2030 to a 60% mix of gas and LNG, increasing the contribution of LNG equity. Indonesia, and Southeast Asia in general, plays an important role in this strategy.
Geng North, thanks to its location and size, has the potential to significantly contribute to the creation of a new production hub in the northern part of the Kutei basin, connectable to the liquefaction (LNG) facilities of Bontang, on the coast of East Kalimantan , taking advantage of the available capacity. In addition to Geng North, the area of interest is estimated to have over 5 trillion cubic feet (Tcf) of gas in place in undeveloped discoveries; at the same time, an equally significant exploratory potential is at an advanced stage of definition through ongoing studies.
The Geng North discovery is in fact adjacent to the Indonesia Deepwater Development (IDD) area, which includes several discoveries not yet developed, in particular in the Rapak and Ganal licenses, for which Eni recently announced the acquisition of Chevron's interests, by increasing the participation fee and acquiring the role of operator. It is believed that significant synergies in terms of development options between the two areas are possible. The acquisition also provides the opportunity for rapid development ("fast track") of the existing Gendalo and Gandang discoveries (with recoverable reserves of approximately 56 billion cubic meters of gas) through the Jangkrik production facilities operated by Eni.
The Geng North discovery follows the recent announcement of the agreement reached by Eni for the acquisition of Neptune Energy, upon completion of which Eni's position in the North Ganal block and the Geng North discovery will further strengthen.
The block is operated by Eni North Ganal Limited, which holds a 50,22% stake, with Neptune Energy North Ganal BV and Agra Energi I Pte Ltd holding the remaining 38,04% and 11,74% respectively.
Eni has operated in Indonesia since 2001 and manages a large portfolio of exploration, development and production assets with gas production of approximately 80.000 barrels of oil equivalent per day at altitude from the Jangkrik and Merakes fields offshore East Kalimantan.